Isa Yousefi, Head of Sales at Sangan steel, outlined the company’s sales performance in the previous year and its plans for the year ahead on the sidelines of the 28th Iran Steel Exhibition and Symposium in Isfahan. He said Sangan steel company sold approximately 4.8 million tonnes of products in 1404 and had set a target of around 5.1 million tonnes for 1405.

In 1405, despite the suspension of direct purchases from the company by Mobarakeh Steel, Sangan steel company has placed the reorganization of its sales channels and expansion of cooperation with other steelmakers on its agenda. Alongside a 2.3-million-tonne barter agreement with Golgohar Iron and Steel Development Company, purchases by Hormozgan Steel, Sabzevar Steel, and Saba Steel have become key components of the company’s sales plan.

Yousefi said that a major share of Sangan steel’s sales in previous years had been allocated to the Mobarakeh Steel Group. However, circumstances affecting the group and recent developments in the country had led Mobarakeh Steel to suspend direct purchases from Sangan steel company in 1405.

Restructuring Sales Channels Through a 2.3-Million-Tonne Barter Agreement

Yousefi described the barter agreement with Golgohar Iron and Steel Development Company as one of the measures designed to manage the new sales conditions. Under the agreement, Sangan steel company is committed to supplying 2.3 million tonnes of iron ore pellets to Golgohar Iron and Steel Development in exchange for direct reduced iron (DRI). The DRI will subsequently be supplied to the Mobarakeh Steel Group.

He also reported that cooperation with other companies affiliated with the Mobarakeh Steel Group was continuing. Sabzevar Steel purchased more than 500,000 tonnes of products from Sangan steel company during the current year. Hormozgan Steel also made substantial purchases during this period. Expanding cooperation with these companies is part of Sangan steel’s plan to maintain sales flows and meet its annual targets.

Purchase of Stockpiled Shipments in Bandar Abbas and Follow-up on Exports from Chabahar

Yousefi explained that the imposed war had affected Sangan steel’s export plans. Some products transported to Bandar Abbas for export could not be shipped because of the conditions arising from the war. Given Sangan steel’s position within the Mobarakeh Steel Group, most of the products stored at Shahid Rajaee Port and in the Saribar and Falat Bandar warehouses were purchased by Hormozgan Steel.

Regarding the company’s other export shipments, he said some products had been transferred to Chabahar for export and the relevant procedures were being followed up. The company hoped to export these shipments during the current year and use the resulting foreign-currency revenues to advance projects and procure the spare parts it needs.

Continued Purchases by Saba Steel; Suspension of Sales to Sefid Dasht Steel

In describing cooperation with companies in the Mobarakeh Steel Group, the Head of Sales announced that sales to Sefid Dasht Steel had been suspended because of problems with that company’s production line. According to Yousefi, damage sustained by Sefid Dasht Steel during the war had affected its production conditions, and Sangan steel company was currently unable to dispatch products to the company.

Cooperation with Saba Steel, by contrast, is continuing. Yousefi said Saba Steel had purchased more than 200,000 tonnes of products from Sangan steel company in the first six months of the year. The plan is to increase sales to this company to approximately 500,000–600,000 tonnes by year-end.

Gas Restrictions and the Possibility of a Pellet Shortage in the Second Half of the Year

Yousefi identified energy restrictions as one of the factors affecting production and the steel-products market in the second half of the year. Drawing on the experience of previous years, he said the country’s steel industry was expected to face gas restrictions and interruptions during the second half of the year.

He added that restrictions or interruptions in gas supply could affect production and, in turn, create the possibility of a shortage of iron ore pellets in the country.

Launch of a Service-Sales System to Improve Financial and Tax Transparency

Finally, the Head of Sales referred to the launch of a service-sales system at Sangan steel company as another initiative in the sales function. The system was introduced during 1404 and 1405. Under this arrangement, services provided by different company departments—including laboratory services, industrial transport, light- and heavy-vehicle transport, and catering—are recorded and accounted for through sales invoices.

Yousefi said the purpose of the initiative was to make financial and tax processes more transparent. The system ensures that the services provided and their associated financial transactions are accurately recorded in the company’s financial structure, helping improve transparency and strengthen discipline in Sangan steel’s tax procedures.